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Global Infrastructure as a Service (IaaS) Market: Projected Growth, Key Drivers, Principal Players, and Market Trends

01-30-2025 08:57 AM CET | IT, New Media & Software

Press release from: The Business Research Company

Infrastructure as a service (IaaS) Market Size

Infrastructure as a service (IaaS) Market Size

Exponential Growth Projected for Infrastructure as a Service (IaaS) Market Fueled by Rise of Agile Practices, Outsourced IT Infrastructure, Globalization, Digital Transformation, and Enhanced Security Measures.

What Is The Projected Market Size Of The Global Infrastructure as a Service (IaaS) Market And Its Growth Rate?

• The IaaS market size has shown rapid growth in recent years, growing from $154.39 billion in 2024 to $171.96 billion in 2025, indicating a Compound Annual Growth Rate (CAGR) of 11.4%.
• The growth over the historic period was encouraged by evolving workforce dynamics, a rise of DevOps and Agile practices, a strategic shift to outsourced IT infrastructure, and globalization and market expansion.
• The IaaS market size is projected to see a rapid growth in the years to come. The market is expected to reach $276.81 billion in 2029 at a CAGR of 12.6%. This upward trend is driven by digital transformation initiatives, enhanced security measures, a focus on sustainable infrastructure, hybrid, and multi-cloud adoption, AI, and machine learning integrations.

What Is Driving The Growth In The Infrastructure as a Service (IaaS) Market?

The growth of the IaaS market is being propelled by the rise in the number of small and medium-sized businesses (SMBs). These businesses are generally defined by certain limits on personnel and revenue numbers. By allowing IaaS providers to handle all infrastructure components, SMBs can reduce their maintenance and upgrade costs. For example, as of November 2023, small businesses comprised 99.9% of all businesses in the United States, according to the U.S. Small Business Administration (SBA). The 33.3 million small businesses in 2023 created 4.9 million new jobs. So, a surge in the count of small and medium-sized businesses is catalyzing the growth of the IaaS market.

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Who Are the Key Players Driving Infrastructure as a Service (IaaS) Market Growth?

Notable companies in the IaaS market include:
• Alphabet Inc
• Google Inc.
• Microsoft Corporation
• Alibaba Group Holding Limited
• Dell Technologies Inc.
• Tencent Holdings Limited
• Amazon Web Services Inc.
• International Business Machines Corporation
• Cisco Systems Inc.
• Oracle Corporation
• Fujitsu Limited
• Hewlett Packard Enterprise Company
• Savvisa Century Link Company
• DXC Technology Company
• VMware Inc.

What Are The Key Trends In The Infrastructure as a Service (IaaS) Market?

The forecast period will see several major trends:
• Adoption of serverless computing
• Application of containerization and Kubernetes
• Emergence of edge computing infrastructure
• Integration of artificial intelligence (AI)
• Deployment of software-defined infrastructure (SDI)

What Are The Segments Of The Global Infrastructure as a Service (IaaS) Market?

The IaaS market can be segmented as follows:
• By Deployment Type: Public Cloud, Private Cloud, Hybrid Cloud
• By Application: Managed Hosting, Storage As A Service, Disaster Recovery As A Service And Backup, Compute As A Service (CaaS), Network As A Service (NaaS), Content Delivery Services, High-Performance Computing As A Service (HPcaaS)
• By End User: Small And Medium Enterprises (SMEs), Large Enterprises
• By Industry Vertical: Banking, Financial Services, And Insurance (BFSI), Government And Education, Healthcare, IT And Telecom, Retail, Manufacturing, Media And Entertainment, Other Industry Verticals

Which Region Leads The Infrastructure as a Service (IaaS) Market?

In 2024, North America held the largest share of the IaaS market, with Western Europe coming second. Subsequent growth is expected across Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

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What Is Covered In The Infrastructure as a Service (IaaS) Market Global Market Report?

- Market Size Analysis: Analyze the IaaS Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the IaaS Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall IaaS Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the IaaS Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

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